MBS RECAP: Late December Liquidity Causing Volatility

This post is equal parts critique (of the over-democratization of markets), recap (of the bond rally and its reversal) and in-depth analysis (of the mechanics behind recent action). The late-March.

Mortgage Rates Moved Slightly Lower This Week Mortgage Rates Chip Away at Last Week’s Losses Last week was all about fear. but not before stock investors had panicked about it. Higher interest rates can make it more attractive to pull money out of stocks and sock it away in the bond market.

Can I switch mortgage lenders after locking my loan? Mortgage Rates Drop Again; existing-home sales and Prices Climb  · U.S. Sales of Existing Homes Climb to an Almost 11-Year High. Higher mortgage rates next year could further cut into affordability, the NAR said.. Existing home sales.If you don't lock, your mortgage rate could change by the time the loan. You could also wait for interest rates to fall and then apply for a loan, but you might. Ultimately, however, when interest rates are at historic lows, it seems. Read your lender, and if you feel that they might be pushing you into locking,Mortgage rate spike finally hits housing market Mortgage rates are up 45 percent in just the past six weeks. Analyst mark hanson called this a "credit event unlike any pure rate spike in recent housing market history."

If a change occurs, our business, financial condition, liquidity. of those that could cause actual results to vary from our forward-looking statements: changes in interest rates and the market.

Shareholders gained a major boost to liquidity after. value argument for Agency MBS. Despite the constant bombardment of geopolitical headlines, the 10-year swap rate only moved in a 30 basis point.

Mortgage rates today, August 7, 2018, plus lock recommendations  · Mortgage rates today are driven by movements in financial markets worldwide. When the economy heats up, bond price drop, and rates increase. When the economy pulls back, interest rates.

On the earnings call, they said they expect to receive informational data on the latter in late 2017. have far higher volatility/beta and more dramatic swings in price than mid-cap and large caps.

These and other factors may also lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. Growth stocks may be more susceptible to earnings disappoint -. Mortgage-backed securities are subject to prepayment risk and the risk that they may. late December 2017.

other types of debt instruments. For example, rising interest rates tend to extend the duration of fixed-rate MBS, making them more sensitive to changes in interest rates and causing funds investing in such securities (such as the Fund) to exhibit additional volatility.

However, the target range for the federal funds rate has been near zero since December 2008. debt and agency MBS and indicated that we were considering more securities purchases, equity prices have.

Yield spreads between agency MBS and credit sectors have widened from record lows in 2018 but have still not returned to longer-term historical averages, indicating that agency MBS could provide value relative to risk assets. Within the agency MBS sector, we believe shorter-duration MBS with higher coupons could offer the best relative value.

MBS RECAP: Bonds Run Out of Steam, But Not Composure . MBS RECAP: Bonds Run Out of Steam, But Not Composure . All things being equal, today was a fine day for the bond market. Sure, 10yr yields ended the day 2bps higher than yesterday’s latest levels, but in the recent context, they’re better thought of as "sideways at the best levels in a.